River City Ranches #1 Ltd., Leon Shepard, Tax Matters Partner - Page 93

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          offensive collateral estoppel when the current defendant was                 
          previously successful.  Petitioners freely admit that they found             
          no case law allowing for such an application.  Additionally,                 
          petitioners have not presented a persuasive argument or                      
          sufficient rationale for this Court to adopt a use of offensive              
          collateral estoppel, which is the antithesis of that determined              
          by the Supreme Court of the United States in Parklane Hosiery Co.            
          v. Shore, supra.  As the Government was successful in the                    
          previous action against Jay Hoyt, petitioners are precluded from             
          asserting offensive collateral estoppel against respondent.                  
               Further, petitioners seek to apply the nonmutual form of                
          offensive collateral estoppel against respondent to establish the            
          existence of a theft from the partnerships.  Petitioners claim               
          that language in United States v. Mendoza, 464 U.S. 154 (1984),              
          allows nonmutual offensive collateral estoppel in certain                    
          situations.                                                                  
               Petitioners assert, yet present no authority, that Mendoza              
          has been limited by some courts “to situations where the policy              
          concerns of the Court exist.”  Petitioners cite, exempli gratia,             
          NLRB v. Donna Lee Sportswear Co., 836 F.2d 31 (1st Cir. 1987),               
          for the proposition that “Mendoza has been limited in application            
          to require mutuality only where important issues of law are at               
          stake.”  However, petitioners fail to cite the many cases from               
          this Court and the Court of Appeals for the Ninth Circuit,                   






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